Business sentiment sours ahead of feared tax hikes

BUSINESS sentiment slumped last month as firms braced for further tax increases in the autumn Budget.

- By Simon Hunt

Private sector confidence fell from 54% to 42%, according to the Lloyds Business Barometer survey, data which is typically viewed as being more optimistic than rival findings.

Economic optimism edged down for the second time since April, with a fall of 11 points to 33%. Trading prospects fell by 12 points to 51%, while manufacturing experienced a decline in confidence of 31 points to 31%, a two-year low.